TSXV:BHR

Stock Analysis Report

Blackheath Resources

Executive Summary

Blackheath Resources Inc. engages in the exploration, development, and production of mineral properties in Northern Portugal.

Rewards

Earnings have grown 50.2% per year over the past 5 years

Risk Analysis

Has less than 1 year of cash runway

Shares are highly illiquid

Does not have a meaningful market cap (CA$493K)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 1 more risk


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

How has Blackheath Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BHR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-36.4%

BHR

2.4%

CA Metals and Mining

0.6%

CA Market


1 Year Return

-53.3%

BHR

4.4%

CA Metals and Mining

5.8%

CA Market

Return vs Industry: BHR underperformed the Canadian Metals and Mining industry which returned 4.3% over the past year.

Return vs Market: BHR underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

BHRIndustryMarket
7 Day-36.4%2.4%0.6%
30 Day-6.7%1.2%0.5%
90 Dayn/a6.6%3.6%
1 Year-53.3%-53.3%5.0%4.4%9.1%5.8%
3 Year-91.3%-91.3%-10.4%-11.9%15.4%5.0%
5 Year-96.1%-96.1%22.9%19.2%33.6%14.0%

Price Volatility Vs. Market

How volatile is Blackheath Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Blackheath Resources undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Blackheath Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Blackheath Resources has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of BHR’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Blackheath Resources regulatory filings.
  • Explore potentially undervalued companies in the Materials industry.

Future Growth

How is Blackheath Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.6%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Blackheath Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Blackheath Resources performed over the past 5 years?

50.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHR is currently unprofitable.

Growing Profit Margin: BHR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BHR is unprofitable, but has reduced losses over the past 5 years at a rate of 50.2% per year.

Accelerating Growth: Unable to compare BHR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BHR is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (11.9%).


Return on Equity

High ROE: BHR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Blackheath Resources's financial position?


Financial Position Analysis

Short Term Liabilities: BHR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: BHR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: BHR is debt free.

Reducing Debt: BHR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: BHR has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BHR's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BHR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: BHR has less than a year of cash runway if free cash flow continues to grow at historical rates of 42.1% each year.


Next Steps

Dividend

What is Blackheath Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate BHR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BHR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BHR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BHR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BHR's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average board tenure


CEO

Alex Langer (34yo)

4.2yrs

Tenure

0

Mr. Alexander Langer, also known as Alex, has been the President at Blackheath Resources Inc. since June 2014 and has been its Chief Executive Officer since December 1, 2015. Mr. Langer was Vice-President  ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD155.16K).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Kerry Spong
CFO, Corporate Secretary & Director8.8yrsno data2.97% CA$14.7k
James Robertson
Chairman4.2yrsno data6.92% CA$34.1k
John Roberts
Member of Advisory Committee3.1yrsno datano data
Jonathan Carter
Independent Director8.8yrsno data2.45% CA$12.1k
David Rokoss
Independent Director2.7yrsno data0.29% CA$1.4k

4.2yrs

Average Tenure

66yo

Average Age

Experienced Board: BHR's board of directors are considered experienced (4.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Top Shareholders

Company Information

Blackheath Resources Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Blackheath Resources Inc.
  • Ticker: BHR
  • Exchange: TSXV
  • Founded: 2011
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$493.393k
  • Shares outstanding: 5.19m
  • Website: https://www.blackheathresources.com

Location

  • Blackheath Resources Inc.
  • 1177 West Hastings Street
  • 23rd Floor
  • Vancouver
  • British Columbia
  • V6E 4T5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHRTSXV (TSX Venture Exchange)YesCommon SharesCACADJul 2012

Biography

Blackheath Resources Inc. engages in the exploration, development, and production of mineral properties in Northern Portugal. It primarily explores for tungsten and tin deposits. The company holds interests in the Borralha tungsten property that covers an area of 93 square kilometers located in the municipalities of Montalegre and Veira do Minho. Blackheath Resources Inc. was incorporated in 2011 and is based in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:06
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.